Closing down a company in Pakistan can be a complex process. However, the Securities and Exchange Commission of Pakistan (SECP) offers a simplified option for companies that have ceased operations and have no outstanding liabilities or assets: the Easy Exit Scheme. This scheme allows companies to strike their name off the register of companies, effectively dissolving the company.
Eligibility Criteria
The Easy Exit Scheme is available to companies meeting the following criteria:
- Ceased Operations: The company must have stopped all business activities.
- No Known Assets or Liabilities: The company should have no outstanding debts or financial holdings.
- Eligibility under Companies Act, 2017: The company must meet the eligibility criteria outlined in Section 426 of the Companies Act, 2017.
Application Process
Here’s a step-by-step guide to applying for the Easy Exit Scheme:
-
Review Regulations: Carefully examine the Companies (Easy Exit) Regulations, 2014 to understand the complete regulations and any exclusions that might apply.
-
Prepare Documents: You will need the following documents to submit your application:
- Form EE-I: Application to strike the company’s name off the register of companies.
- Form EE-II: Copy of a members’ resolution approving the application.
- Meeting Minutes: Minutes of the meeting containing dissenting member viewpoints (if any).
- Form EE-III: Declaration/indemnity signed by a minimum of three-fourths of directors, including the CEO, verified by affidavit.
- Form EE-IV: Auditors’ certificate from a qualified auditor. Public companies, subsidiaries of public companies, and private companies with a paid-up capital exceeding PKR 3 million require a certificate from a chartered accountant.
- No Objection Certificate (if applicable): Companies formed under a licensing regime or requiring approval from other entities must provide no-objection certificates from those authorities.
-
Filing the Application: You can file your application online through the SECP’s eServices portal (eservices.secp.gov.pk) for a fee of PKR 5,000/-. Alternatively, offline filing is possible for a fee of PKR 10,000/-.
Important Points to Note:
-
Inactive Companies: Companies currently listed as “inactive” with the SECP must first reactivate their status by filing Form 39 before applying for Easy Exit.
-
Dissenting Members: If any members disagree with the application, their viewpoints should be reflected in the meeting minutes.
Conclusion
The Easy Exit Scheme provides a streamlined process for winding up a company in Pakistan. By following the steps outlined above and ensuring compliance with the eligibility criteria, businesses can efficiently close their operations and avoid the complexities of traditional dissolution procedures. Remember to consult the official regulations and seek professional advice for any specific concerns.
